When is the last time you heard someone brag about their new Sony Ericsson phone? Maybe 2 years ago, (right Emmy)? Have you spotted anyone on the train or in a cafe lately trying really hard to make sure you notice their new iPhone Sony Ericsson? Didn’t think so!
The FT Weekend’s article, “Sony Ericsson expects losses to widen,” went on and on, taking pity on Sony Ericsson as a victim of the recession. Impatiently, I made my way through the article, which finally stated the obvious only at the very end!
It is no surprise that Sony Ericsson stock tanked with their profit warning of Q1 losses nearing EUR 400m, but too bad they brought the rest of the sector down with them. While it is true that mobile phone sales are expected to drop this year for the first time since 2001, and the drop could be in the double digits, Sony Ericsson is failing because they don’t make the phones that people want. The economy is not to blame! This recession is turning out to be the “Big Reveal”. There is simply no place for Sony Ericsson to hide from the bad decisions they made about market research and product development. Najmi Jarwala, president of Sony Ericsson’s US operations resigned this week. He won’t be the last technology chief revealed as an innovation failure! Ultimately, the current economy will force all companies to focus more on what customers want!
Suzy Ogé is an American born business woman living in The Hague, The Netherlands. 
{ 2 comments… read them below or add one }
Sony should have never started making phones. It’s a shame that they didn’t develop the PlaySationPortable further as it already had a lot more to offer before the iphone came along.
… all about finding what you do best, and sticking to it … as opposed to trying to be something to all (and making a buck along the way). An alternative KISS principle comes to mind when I read this (and other similar articles), let us all ‘keep it service and selective’ oriented …focus on what we can and do well, take reward from doing so and keep our margins manageable …. if there is any lesson from the current challenges, it is that we (a) cannot have it all and (b) cannot service all masters – other than ourselves. …. have always been a Nokia fan so choose to respond to the theme, not topic
Deborah